How long do you want to play the housing cycle?
Sean Fenton from Tribeca Investment Partners has explained the headwinds he perceived to be facing the property and construction sector. “It's a little too early to go short but it's definitely time to start thinking about how long you want to be playing the housing cycle. It will take a while for that to play through; it's just a matter of how far the market anticipates that. If people start to anticipate that peak, you'll see a bit of selling coming into some of the stronger-performing building material stocks…. You have two sources of demand – household and investors. Through this period I don't think you've seen strong growth from that owner-occupier segment in terms of building demand. I think it's fair to say a lot of housing activity has been driven by investors and developers. We're looking to capitalise on that and we're also looking capitalise on some of that hot money flowing out of China as well.” Full article via the AFR: (VIEW LINK)